17 mars 2008 Par La Rando

UAE stocks continue slide amid bearish global trend

Abu Dhabi: The UAE stock markets continued their slide on Sunday in line with the bearishness prevailing in global financial markets. Markets worldwide were highly volatile last week, impacted by lifetime-high oil prices and a weak dollar. Traders were unnerved by global concerns that the US economy is fast heading towards recession. The Emirates Securities general index fell 1.25 per cent yesterday to 5,932.96 from 6,008.17, its previous close. The Abu Dhabi Securities Market (ADSM) general index fell 1.07 per cent to 4,681.97, while the Dubai Financial Market (DFM) index closed at 5,675.47, down 1.36 per cent. Market analysts, however, said the fundamentals of the UAE economy are strong and the domestic bourses will bounce back into positive territory soon. « This is a temporary phase. If the first quarter results of major listed companies are strong, it will cement the belief of investors that over the long term, the UAE markets are immune to the shocks in the global economy, » said an investment banker. The ADSM was dragged down by the energy sub-index that fell 2.80 per cent, followed by industrial sub-index that declined 2.30 per cent. Shares valued at more than Dh426.31 million were traded, with the volume of shares exceeding 70.43 million. Aldar Properties was the most actively traded, while Emirates Driving Company was the main gainer closing 2.20 per cent higher at Dh6.51. Oman & Emirates Inv. Holding was the main loser, declining 6.10 per cent to Dh6. On the DFM, more than 170.67 million shares valued in excess of Dh838.1 million were traded. AirArabia’s stock was the most active by volume, while Dubai Refreshments (DRC) was the main gainer. DRC’s shares rose 4.85 per cent to close at Dh17.30. Oman Insurance was the main loser declining 4.98 per cent to Dh9.74 at close.

16 mars 2008 Par La Rando

UAE central bank ‘studies revaluation’

Dubai: The UAE’s central bank has launched a study into a revaluation of the dirham, the Middle East Economic Digest (MEED) reported late on Friday, citing a bank official. « There is a study group that has been looking at the effects a revaluation would have for several months now as part of the planning for the long-term strategic future of the bank, » MEED quoted the official as saying. The group is expected to report the findings at the end of 2008, according to the magazine. The UAE, like other Gulf Arab countries, which peg their currencies to the dollar, is struggling to curb soaring inflation, driven by a five-fold increase in oil prices during the last six years and lower interest rates. Source: Reuters

14 mars 2008 Par La Rando

Jumbo plans Dubai listing with eye on retail investor

Dubai: Jumbo Group, the $2 billion electronics retailer, is planning to expand business organically as well as through acquisitions, in addition to a planned listing in Dubai. « Given Jumbo’s current financial position, we would, in fact, be interested in acquiring some businesses with synergies, » Vidya Chhabria, chairperson of Jumbo Group, said, responding to takeover rumours. « We would want the people of Dubai to share in our success, and at the appropriate time we would definitely like to list Jumbo in Dubai. The listing when it happens will be skewed towards the small, retail investor to give them a chance to share in the growth of Jumbo. « With Jumbo’s projected growth rates exceeding 25 per cent year on year for at least the next ten years, it would definitely provide a good investment opportunity to the small investor. » The group’s flagship company, Jumbo Electronics, was established in 1974 by Manohar Rajaram Chhabria, a non-resident Indian, who made a fortune selling Sony televisions. The company benefitted from the massive growth of the electronics retail business in Dubai. Chhabria yesterday outlined her companies growth plans that is expected to raise its current annual turnover fivefold from Dh1 billion. « Jumbo’s turnover will touch Dh5 billion soon. It has substantially increased the gap between itself and its competitors. » « The growth is solid and sustainable as it is organic, and not through acquisitions. The Jumbo Group has over the last few years reinvested millions of dirhams into the business to fund its rapid expansion. Jumbo has an exceptionally strong balance sheet completely free of any term debt. The group has several divisions with turnovers of over Dh1 billion. » Chhabria, however, ruled out inducting new partners. « We have no intention of bringing on new partners into the business nor any intention of diluting the stake in the business. »

12 mars 2008 Par La Rando

Airline officials in UAE optimistic of India operations

Dubai: Airline officials in the UAE on Tuesday said they would continue to operate flights to India despite a major strike by airport employees. « Emirates flights to India will continue to operate as per schedule, » the Emirates spokesperson said in an e-mailed statement « We have been informed that airport authorities and private ground handling agencies will deploy additional staff, if necessary, to compensate for those going on strike, » the statement said. Emirates operates 99 flights weekly to nine Indian gateways including 28 to Mumbai, 14 to Chennai, 11 to Hyderabad, 10 to Kochi, eight to Bangalore, eight to Thiruvananthapuram, seven to New Delhi, seven to Kolkata, and six to Ahmedabad with a healthy load factor of over 80 per cent. Although the strike involves 127 airports, services at major gateway hubs including Mumbai and Delhi might not be affected badly as they are run by private sector operators. Jayshree Ramchandran, the marketing manager of Air India, sounded optimistic and said that the airline will land and take off from India. Assurance « We have checked with all Indian airports’ authorities and they have given us the assurance that there will be only minimum disruption. For us this is shoulder season [not peak, not lean season]. We have 70 per cent out passengers, » she said. Air India operates 7 flights to Mumbai, 7 to Delhi and 5 to Kerala weekly. « We operate 58 Air India express flights from Dubai and 18 flights from Sharjah, » she said. « I understand that there is some crisis management plan that the Airport Authority has planned, » said Ramachandran. Anand Pandey, the country manager of Indian Airlines, echoed his counterpart in Air India. Downplayed « The strike is called by the non-executive members of the Airports Authority. It will not affect Air Traffic Control, » he said. Indian Airlines operates 104 flights out of UAE to 16 Indian destinations. « We fly about 1,400 passengers per day. Some minor disruptions that can occur will be in the area of positioning of gate bridges and aero bridges or the terminal could be dirty, » Etihad Airways, the national carrier of the UAE, has downplayed the issue. « Etihad Airways is aware of the proposed industrial action due to take place at airports across India from midnight this evening, » a spokesperson said. Etihad currently flies to four destinations in India: Delhi, Mumbai, and Kochi and Thiruvananthapuram, both in Kerala. Cathay Pacific, which carries passengers from the UAE to Mumbai, might not be affected as well. Henry Chan, Cathay Pacific Airways Country Manager for UAE and Oman, said, « Cathay Pacific Airways has not experienced any service disruption with its daily flights to India and confirmed that all our flights as of now are as per the schedule. « We will continue to monitor the situation to ensure that our customers are provided with the most up-to-date flight information. Customers can visit our website at www.cathaypacific.com to know latest on arrival and departures of our flights. » Source: Gulf News Report

8 mars 2008 Par La Rando

Oil prices hit new record above $106 on interest rate, dollar expectations

New York: Oil prices jumped to a new record above $106 on Friday but extended their recent pattern of choppy trading after a weak jobs report convinced many traders that the Federal Reserve’s interest rate-cutting campaign will continue. Employers cut 63,000 jobs in February, the biggest drop in five years, the Labor Department said Friday. Investors can react to such news in one of two ways: by selling on the prospect that the economy, and demand for oil, is cooling, or by buying on a conviction that bad economic data makes it more likely the Fed will cut rates. On Friday, investors engaged in a little of both, sending oil prices down more than a dollar at one moment, and propelling them to new records the next. « The higher the market goes, the more volatile it becomes, » said Darin Newsom, senior analyst at DTN in Omaha, Nebraska. « Does it mean that the rally is over? No. » Light, sweet crude for April delivery rose 46 cents to $105.93 a barrel on the New York Mercantile Exchange after setting a new trading record of $106.54. Lower interest rates tend to weaken the dollar, and many analysts believe the weak dollar is the reason why oil has set new inflation-adjusted records three times this week, and risen 23 per cent in less than a month. Crude futures offer a hedge against a falling dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the dollar is falling. On Friday, the dollar set a new low against the euro Friday before rising. But most investors believe that despite occasional rebounds, the dollar is likely to continue falling as the Fed continues to cut rates. AP

5 mars 2008 Par La Rando

Dubai International Capital confirms bid for Liverpool

Dubai: Dubai International Capital, the private equity arm of the Dubai Holding, said on Tuesday that it is bidding to buy the Liverpool football club, but said the company has not reached an agreement with the American owners of the club on the valuation. « It’s no secret that we have been in discussions with the current owners. But valuations they expect have been out of sync with our assessment, » Sameer Al Ansari, chief executive of Dubai International Capital (DIC) said on the sidelines of the Private Equity International Forum in Dubai yesterday. Al Ansari did not rule out the possibility of reaching an agreement with the current owners Tom Hicks and George Gillett. Speaking about the valuation, Al Ansari said the Liverpool owners are in a ‘dreamland’. However, he noted that one of them now is coming out of the dreamland. Despite Hicks’ remarks last month that he was not planning to sell a stake in the soccer club, there have been persistent rumours and media reports in recent weeks about DIC’s negotiations with the owners of the club. London-based newspaper The Times said yesterday that DIC was confident Gillett would accept its offer of £200 million ($397 million) for his 50 per cent stake, but added there were claims that Hicks was ready to exercise his option to buy it out. Hicks and Gillet borrowed £350 million ($695 million) in January as part of a refinancing deal. If DIC has offered a total of £400 million as reported by the British media yesterday, the American investors would make a total of £50 million from the deal. If the deal with DIC does not go through, the club will be saddled with an annual interest burden of £28 million on the funds borrowed by the American owners. While Liverpool fans are concerned about the debt burden, Hicks, in particular, has been under pressure after being subjected to heavy criticism from fans following public disagreements with popular manager Rafael Benitez. He has also come under fire for his public admission that talks had been held with Jurgen Klinsmann about possibly succeeding the Spaniard. Update: Owners reject offer Liverpool co-owners Tom Hicks and George Gillett rejected Dubai International Capital’s bid for the Premier League club yesterday, the Associated Press reported. The £400 million ($800 million) offer for the English club was turned down, a person involved with the negotiations said. He spoke on condition of anonymity. Hicks « turned down the offer immediately upon receipt, » the person said, adding the Texan is still willing to allow Gillett to sell 49 per cent of his stake as long as Hicks gets the other one per cent. – AP

2 mars 2008 Par La Rando

New company to manage Dubai events

Dubai: The Dubai Government has issued a law establishing an event management agency with a capital of Dh150 million to manage and organise cultural and sports events, exhibitions and conferences in the emirate. His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, yesterday issued the law creating the new body. The law states that the Dubai Event Management Corporation will be a corporate body with financial and administrative independence and full legal competence to achieve its objectives. Owned by the Dubai Government, it will operate under the authority of the Dubai Ruler. The new entity is aimed at enhancing Dubai’s position as an international hub for sports and cultural events, conferences and exhibitions. Shaikh Mohammad also issued a decree appointing Shaikh Ahmad Bin Mohammad Bin Rashid Al Maktoum as chairman of the corporation. WAM

1 mars 2008 Par La Rando

UAE and Germany to boost cooperation

Munich: His Highness Dr Shaikh Sultan Bin Mohammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, received here on Thursday Speaker of the Bavarian Parliament Alois Gluck. During the meeting held at the Marriot Munich, they discussed bilateral relations and cooperation between Sharjah and Germany, especially in the fields of economy, culture, science and scientific research. The Sharjah Ruler said the distinct strategic relations between the UAE and Germany are based on mutual respect and enhanced by an equal desire to widen them in the fields of economy and trade. The Bavarian parliament speaker hailed the strong relations between the UAE and Germany, adding that the efforts of the leaders in both the countries have bolstered the relations. The meeting was attended by senior government officials from Sharjah and Germany. The Nation Government UAE and Germany to boost cooperation WAM Published: March 01, 2008, 01:05 Munich: His Highness Dr Shaikh Sultan Bin Mohammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, received here on Thursday Speaker of the Bavarian Parliament Alois Gluck. During the meeting held at the Marriot Munich, they discussed bilateral relations and cooperation between Sharjah and Germany, especially in the fields of economy, culture, science and scientific research. The Sharjah Ruler said the distinct strategic relations between the UAE and Germany are based on mutual respect and enhanced by an equal desire to widen them in the fields of economy and trade. The Bavarian parliament speaker hailed the strong relations between the UAE and Germany, adding that the efforts of the leaders in both the countries have bolstered the relations. The meeting was attended by senior government officials from Sharjah and Germany. Click Here! Dr Shaikh Sultan signed an academic cooperation between the Sharjah Academy of Scientific Research and the German Fraunhofer Corporation. Dr Shaikh Sultan welcomed the agreement during his meeting with Heinz Gerhuser, Chairman of Fraunhofer Corporation, reiterating its importance in the light of good relations, which link between the UAE and Germany in general and Germany with Sharjah emirate in particular. He underscored the interest and need of Sharjah for promising secure energy that is friendly to environment and human health, hailing cooperation between the Sharjah academy and Fraunhofer Corporation. Solar energy On his part, Gerhuser commended the bilateral relations between the two countries, adding that the cooperation would score positive results in the renewable energy fields. The agreement comes in line with care given by Sharjah to sciences and latest technology. As per this agreement, a close cooperation will be established between engineers and scientists of both parties of the agreement to execute joint projects, particularly in the fields of architecture, sewage treatment and solar energy. The joint projects include linking some parts of university district with environment-friendly water filtering laboratory, which guides water consumption, as well as construction of experimental houses to gauge provision of energy to these houses in fierce climate circumstances in the region. Present at the meeting were chairman of Sharjah Chamber of Commerce, Ahmad Al Midfa, UAE ambassador to Germany Mohammad Ahmad and other high ranking officials. Later, the Sharjah Ruler left for Paris on a two-day tour of France. Source : wam

29 février 2008 Par La Rando

Ajman Bank says IPO is oversubscribed

Dubai: Investors offered more than the $550 million ($150 million) Ajman Bank, the UAE’s seventh Islamic lender, was looking to raise in its initial public offering that closed on Wednesday, the bank’s CEO said. « It was fully subscribed in the first week and the oversubscription came in the last three days, » chief executive Yousuf Khalaf said. The sale, the biggest UAE IPO so far this year, was « well » oversubscribed, Khalaf said, declining to say by how much. Ajman Bank plans to open its first branch in Ajman and another nine in the other emirates within two years, Khalaf said earlier this month. « Our intention is to list on the Dubai Financial Market in April, » he said. The bank offered 55 per cent of its shares, or 550 million stocks at Dh1 each, valuing the bank at Dh1 billion. HSBC Holdings advised on the sale. Source : Reuters

29 février 2008 Par La Rando

Saudi rail firm to award $5b contract by June

Dubai: Saudi Arabia’s railway organisation said it would name by June the winner of its estimated $5 billion project to build a 1,100 km railway across the Saudi desert. Four groups of Saudi and international firms are vying for the 30-year contract to build and operate the rail network linking the Gulf and Red Sea coasts of the world’s largest oil exporter, and final bids are now being invited. « We will know the winner by June, » Mohammad Afzal Khan, adviser to the president of the Saudi Railways Organisation (SRO) said. « The group that asks for the minimum grant from the government and meets the financial models will be the preferred bidder. » Khan said the minimum grant requested was about 6.5 billion riyals ($1.73 billion), declining to name the consortium. Two executives from Saudi construction firms bidding for the project said the minimum grant requested ranged from 6.5 billion riyals to 16 billion riyals, with total project costs estimated at more than $5 billion. Khan said the consortiums would have to put in 20 per cent equity with the remainder coming from bank loans and the government grant. The so-called Saudi Landbridge project includes a 950 km line between the capital Riyadh and the Red Sea port of Jeddah, as well as a 115 km link between the industrial city of Jubail and Dammam, the oil hub on the Gulf coast. Economic boom The Landbridge is one of the projects Saudi Arabia is using to tap a regional economic boom – powered by a quadrupling of oil prices in the past six years – to develop infrastructure, tourism and industry. Kuwaiti logistics firm Agility leads one consortium with US firms KBR, General Electric and Saudi Arabia’s Al Rajhi Bank. Saudi Binladin Group heads a group including Japan’s Mitsui & Co, India’s Ircon International, Germany’s Siemens, Deutsche Bank and Deutsche Bahn. Rajhi Investment leads the group with Mada Company for Industrial & Commercial Investment. Other members include Canada’s SNC-Lavalin and Saudi Arabia’s Samba Financial Group. The fourth consortium, led by Saudi family owned business Al Muhaidib & Sons, includes South Korea’s Samsung Engineering & Construction and French bank BNP Paribas. Source : reuters